Attracting and retaining Gen Z and Gen Y talent: A vital imperative for Canada’s mfg. industry

Younger employees in particular want autonomy and to feel empowered at work. (Piqsels)

The manufacturing industry in Canada stands at a pivotal crossroads, facing a pressing need to attract and retain talent from Generation Z and Millennials (Gen Y). As the sector grapples with an aging workforce and imminent retirements, coupled with the transformative impact of technological advancements such as robotics and AI, engaging younger generations has become more critical than ever for its survival and growth.

The Challenge at Hand
Despite offering lucrative career opportunities and being at the forefront of technological innovation, the manufacturing industry struggles to capture the interest of Gen Z and Gen Y talent. To address this disparity, manufacturers must actively reshape their approach to talent acquisition and retention, aligning with the values and preferences of the younger workforce.

Millennials and Gen Z bring with them distinct values, preferences, and expectations that challenge traditional workplace dynamics. The most effective way to develop strategies to retain the talent of the future, is to understand what makes each generation unique and the historical factors that have shaped their perspectives.

Generation Y (Millennials): Born between 1981 and 1996, Millennials are characterized by their desire for stability and purpose in their careers. Having witnessed the repercussions of overwork and economic instability, they prioritize work-life balance, career development, and alignment with a company’s values. With a significant portion of the workforce belonging to this generation, their preferences shape the future of manufacturing.

Generation Z: Born between 1997 and 2012, Gen Z represents the largest demographic globally, comprising approximately 30% of the population. This digitally native generation values flexibility, technological advancement, and social impact. They seek purpose-driven work environments, diversity, and inclusion, and prioritize mental health and wellness.

Key Strategies for Success

1. Craft a Compelling Talent Value Proposition: articulate a compelling narrative that positions the industry as a hub of technological excellence. Highlighting the potential for career growth, competitive pay, and robust investment in employee development can resonate with younger generations seeking dynamic and fulfilling career paths.
2. Hire for Resilience and Adaptability: Given the rapid technological advancements shaping the manufacturing landscape, prioritize hiring individuals who demonstrate resilience and adaptability. Look for candidates who possess a “figure it out” mindset, capable of navigating evolving challenges and embracing change.
3. Embrace Flexibility: Recognizing the diverse lifestyle demands of younger workers, manufacturers should leverage the inherent flexibility of the industry, particularly through shift work arrangements. By accommodating personal priorities and promoting work-life balance, companies can appeal to Gen Z and Gen Y talent seeking greater autonomy and flexibility in their careers.
4. Prioritize Continuous Investment: Commitment to ongoing technological advancement, mentorship, coaching and ongoing skill development is paramount in attracting and retaining younger talent. By offering opportunities for career progression and remaining at the forefront of innovation, manufacturers can create an environment where employees feel empowered and engaged.
5. Comprehensive Compensation Packages: Beyond competitive salaries, manufacturers should offer flexible health and dental benefits, along with focussed investments in mental health and employee wellness programs. Prioritizing employee well-being demonstrates a genuine commitment to supporting the holistic needs of the workforce and a genuine appreciation for the challenges of the younger generation and the values that they hold dear.
6. Embrace Environmental, Social, and Governance (ESG) Initiatives: Companies need to integrate ESG considerations into their business strategies, aligning with the values and priorities of younger generations. Demonstrating a clear commitment to sustainability and social responsibility not only enhances brand reputation but also attracts purpose-driven individuals seeking to make a positive impact through their work.
7. Emphasize Purpose: Manufacturing plays a vital role in producing essential goods, providing employees with a sense of purpose and connection to the company’s mission. Highlighting the significance of their contributions can instill a profound sense of fulfillment and engagement among Gen Z and Gen Y talent.
8. Foster Diversity and Inclusion: Intentional efforts to diversify the workforce are imperative for driving innovation and fostering a culture of inclusion. By offering personalized experiences and support systems tailored to the needs of diverse employees, manufacturers can create an environment where everyone feels valued and empowered to succeed. Implement inclusive hiring practices, provide comprehensive diversity training, and offer mentorship programs to support underrepresented groups. Create opportunities for employees to contribute to DEI initiatives and advocate for positive change within the organization.
9. Cultivate Open Communication Channels: Younger generations seek opportunities to contribute and make a meaningful impact. Establishing open communication channels through employee resource groups, councils, volunteer initiatives, and social events fosters a sense of community and collaboration, driving employee engagement and retention.

As Canada’s manufacturing industry navigates the complexities of a rapidly evolving landscape, the imperative to attract and retain Gen Z and Gen Y talent cannot be overstated. By embracing innovation, flexibility, and a genuine commitment to employee well-being and diversity, manufacturers can position themselves as employers of choice, ensuring long-term success and sustainability in an increasingly competitive global market.